• About
  • Advertise
  • Privacy Policy
  • Contact
Friday, February 3, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

BoG Confident Inflation Will Peak Later This Year

August 30, 2022
Stephen KotochiebyStephen Kotochie
in Economy, One Top Story
0
BoG Confident Inflation Will Peak Later This Year

Dr. Maxwell Opoku-Afari, First Deputy Governor of the Bank of Ghana

The Bank of Ghana (BoG) has disclosed that its forecast indicates that inflation would peak later this year and begin trending back towards the medium-term horizon.

Dr. Maxwell Opoku-Afari, First Deputy Governor of the Bank of Ghana, indicated that headline inflation has shifted well above the upper band of the medium-term target, driven mainly by food prices, transport costs, upward adjustments in ex-pump petroleum prices, and pass-through of exchange rate depreciation.

The latest data shows that headline inflation rose sharply to 31.7 percent in July 2022 from 29.8 percent in June 2022 on the back of significant increase in both food inflation and non-food inflation. Inflation was 9 percent just a year ago in July 2021.

RelatedPosts

Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF

DDEP: Deadline Further Extended To Tuesday, February 7th, 2023

Economist Advises Government to Stop Depending on Monetary Policy Rate Alone to Fight Inflation

“There are however significant upside risks to the inflation outlook, including increased commodity prices, particularly crude oil, heightened supply chain disruptions, and the over 20 percent increase in utility tariffs set to kick in from 1st September 2022. These are all sources of noise to the economy and the conduct of Monetary Policy”.

Dr. Maxwell Opoku-Afari

Growth Prospects

Dr. Maxwell Opoku-Afari, speaking on the country’s outlook, underscored that despite strong rebound from the pandemic in 2021 as evidenced by the 5.4 percent overall real GDP growth and 6.3 percent non-oil GDP growth, recent data point to some softening in the growth momentum.

National accounts data released by Ghana Statistical Service (GSS) showed that the economy grew, in year-on-year terms, by 3.6 percent in the first quarter of 2022, well below the then 5.6 percent expected growth for 2022. High frequency data such as the Composite Index of Economic Activity (CIEA), Business and Consumer Confidence Indices seem to confirm softening of economic activity.

This prompted downward revision of the growth target to 3.7 percent from the initial 5.6 percent target. Dr. Opoku-Afari cautioned that significant downside risks remain in the outlook, including further headwinds from the Russia-Ukraine war and potential outbreak of new variants of the COVID-19 pandemic.

“As we are all aware, Significant challenges remain with the execution of the 2022 budget as revenue mobilization has not kept pace with projections thereby creating financing difficulties. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review”.

Dr. Maxwell Opoku-Afari

The fiscal challenges have also accentuated debt sustainability concerns.  However, Dr.  Opoku-Afari said the expectation are that the ongoing policy discussions with the IMF will help address the underlying macroeconomic challenges, restore fiscal and debt sustainability, and re-anchor sustainable balance of payments.

Sustaining the recovery

Dr.  Opoku-Afari underscored that following the COVID pandemic and its aftermath, there was optimism that the world economy was going to return to its trend growth.  However, events after 2020, when the world was beginning to recover showed that the world economy has been beset with further set-backs.

While the Pandemic led to a slowdown of the economic activities globally with an impact on the Ghanaian Economy’s growth prospects, the Russia-Ukraine war triggered a downgrade of global growth forecasts by the IMF.

“The crises, for us in Ghana has led to heightened inflationary pressures due to rising energy and food prices. This has necessitated the rollback of Covid-19 era policies and monetary policy tightening across various countries. These developments have far-reaching implications for the domestic economy and there is the need for confidence building to calm financial markets and prevent disorderly reactions during these periods of heightened uncertainty”.

Dr. Maxwell Opoku-Afari

According to Dr.  Opoku-Afari, these conditions and the impact on the Ghanaian economy, especially on inflation, the exchange rate, impact on our balance of payments has resulted in Ghana approaching the IMF for some form of cooperation to address the current imbalances and challenges facing the economy.

 The First Deputy Governor of the Bank of Ghana emphasized that “At this stage, we need to put in all our efforts to begin to restore confidence”.

READ ALSO: Re-registration of SIMs With Ghana Card Is A National Imperative- Ken Ashigbey

Tags: Bank of GhanaCOVID-19DebteconomyGDPinflation

Related Posts

Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF
Economy

Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF

February 1, 2023
DDEP: Deadline Further Extended To Tuesday, February 7th, 2023
Economy

DDEP: Deadline Further Extended To Tuesday, February 7th, 2023

February 1, 2023
Commercial High Court Orders Bank of Ghana to Produce Bank Statement of Capital Bank
Economy

Economist Advises Government to Stop Depending on Monetary Policy Rate Alone to Fight Inflation

January 31, 2023
IMF’s Conditionality Likely To Affect The Execution Of Government’s Flagship Projects
Economy

IMF’s Conditionality Likely To Affect The Execution Of Government’s Flagship Projects

February 1, 2023
BoG’s 110th MPC Meeting: MPC Increases Policy Rate To 28%
Banking

BoG’s 110th MPC Meeting: MPC Increases Policy Rate To 28%

January 30, 2023
Exclusive: Ignorance, Major Reason for Low Women Participation in Forex in Ghana- Gifty Annor-Sika
One Top Story

Government’s New Tactics of Refusing to Grant Forex Cover will not Stem FX Outflow- Forex Analyst

January 30, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

AfCFTA Hub To Strengthen Industry And Regulators To Combat Fraudsters- Ursula Owusu

Next Post

Plans to Demutualize the Ghana Stock Exchange is on Course- Mrs Abena Osei-Poku

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%
Securities/Markets

Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%

by Stephen M.CFebruary 3, 2023
Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump
Innovation

Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump

by Priscilla Dziedzorm FiakpornuFebruary 3, 2023
DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah
Finance

DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah

by Gifty BansahFebruary 3, 2023
Akufo-Addo Ousted Charlotte Osei And 2 Deputies Only To Be Replaced With Pro-NPP Members – Mahama
General News

What Will Mahama Do Differently – Anyidoho And Ken Agyapong

by Samuel Yeboah OtibuFebruary 3, 2023
Republicans Oust Ilhan Omar From Major Committee
USA

Republicans Oust Ilhan Omar From Major Committee

by Comfort AmpomaaFebruary 3, 2023
Stonebwoy Releases Brand New Single ‘More of You’
Entertainment

Stonebwoy Releases Brand New Single ‘More of You’

by Esther Korantemaa OffeiFebruary 3, 2023
Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%
Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump
DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah
Akufo-Addo Ousted Charlotte Osei And 2 Deputies Only To Be Replaced With Pro-NPP Members – Mahama
Republicans Oust Ilhan Omar From Major Committee
Stonebwoy Releases Brand New Single ‘More of You’
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In